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                      <br />
                      Apple releases its iPad multimedia tablet, threatening   the E-book<br />
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                        <h5>
                        <br />
                        Amazon.com, which has dominated the young but fast-growing electronic book   market for the past few years with the Kindle, could get its biggest threat   Saturday, when Apple releases its iPad multimedia tablet.<br />
                        <br />
If the Kindle e-reader falls out of favor with people drawn to Apple's   offering, there could be a very thick silver lining for Amazon: It sells e-books   that can be read on many kinds of devices, including the iPad and other Apple   gadgets. That means the Kindle could fade and Amazon could still occupy a   profitable perch in e-books.
                        &nbsp;
                        <br />
                        <br />
                        The iPad gives publishers an opportunity for a new pricing model. Some   e-books will cost up to $14.99 initially, and Apple is insisting that publishers   can't sell books at a lower price through a competitor. The iBookstore is   launching with titles from major publishers such as Penguin, Simon &amp;   Schuster, HarperCollins, Hachette Book Group and Macmillan. One big publisher,   Random House, has not yet struck a deal with Apple.<br />
                        <br />
                        
                        Amazon declined to comment on the iPad's release.<br />
                        <br />
                        
                        Although Amazon has tried to snag as much of the e-book market as possible   since launching the Kindle in 2007, the company has never revealed how many   Kindles it has sold. Analysts estimate it has sold 3 million. (Analysts believe   Apple could sell that many iPads in the product's first year). Amazon has   offered only sketches of the Kindle's effect on its business, such as by saying   that when books are sold in both hard copy and the Kindle format, it sells 48   Kindle books for every 100 hard copies.<br />
                        <br />
                        
                        Compared to the Kindle, the iPad would seem to have some disadvantages. The   entry-level model is nearly twice the price of the Kindle, yet it can't download   books everywhere. It can do that only where it is connected to the Internet over   Wi-Fi. At 1 1/2 pounds, it is more than twice as heavy as a Kindle. And its   battery lasts for just 10 hours, compared with up to a week on a Kindle when it   has its wireless access on.
                          <br />
                        
                          <br />
                          However, Apple could find ways to tilt the field in its favor. At least for   now, both the Apple iBookstore and the Kindle service will be accessible in much   the same way on the iPad — as &quot;application&quot; icons that users can click.   Eventually Apple could give its own bookstore and reading program more attention   on the iPad.<br />
                        
                          <br />
                          Apple also could try to curry favor with publishers in a way that matters to   consumers, perhaps by securing exclusive titles.<br />
                        <br />
                        
                        Publishers' relationships with Amazon have been strained by Amazon's   insistence on charging $9.99 for some popular e-books. Publishers have   complained that it is an attempt to get consumers used to unsustainably low   prices. Amazon takes a loss on some books at that price, and the publishers fear   that if the $9.99 tag sticks, Amazon will force publishers to lower their   wholesale prices, cutting into their profits.<br />
                        
                        <br />
                        Skinner, an Apple investor who reads about three books a week, says the   contrast between the text and the background is too low on the Kindle's &quot;e-ink&quot;   screen, and reading on it bothers his eyes. The difference between the Kindle   screen and the iPad screen &quot;is like daylight and dark,&quot; Skinner says.<br />
                        
                        <br />
                        Tim Bajarin, an analyst with Creative Strategies Inc., says the iPad signals   the start of a larger shift away from static digital versions of books and   magazines. Eventually e-books will be expected to have multimedia dimensions,   with video and interactive elements, he says, which calls for something more   like Apple's tablet device than something that is largely dedicated to   reading.<br />
                        
                        <br />
                        The main question then would be whether Amazon wants to try to soup up the   Kindle to be more like a tablet, or whether it will remain content to offer   something more specialized. Consider that the Kindle also can surf the Web, but   it's not a feature that's highlighted or encouraged much.<br />
                        <br />
                        
                        The Kindle starts at $259 and is designed mainly for reading text on a   gray-and-black screen. The iPad starts at $499, but with the higher price comes   more functions: a color touch screen for downloading books from Apple's new   iBookstore, surfing the Web, playing videos and games and more.<br />
                        <br />
                        
                        It will take time to determine whether the iPad causes a tremor in the   e-reader market, a high-magnitude quake or something in between. But in the   meantime people who read electronic books or are considering buying a reading   device will find their choices getting more complicated.<br />
                        <br />
                        
                        Amazon stock has risen about 11 percent since Apple unveiled the iPad in   January, while Apple shares have climbed 13 percent. But it's possible that   investors haven't seen many risks yet for Amazon because it's not yet clear how   people will see the iPad.<br />
                        <br />
                        
                        People might not want it as an alternative to the Kindle and a laptop, says   James McQuivey, a Forrester analyst. Instead, he says, they might see the iPad   mainly as a big iPod, leaving room for other kinds of devices. And the hype   surrounding the iPad may help Kindle sales with consumers who want a less   expensive digital reading experience.<br />
                        <br />
                        
                        &quot;The iPad will bring all kinds of consumer benefits that the Kindle can't   even pretend to attempt,&quot; McQuivey says, &quot;but at the same time the Kindle solves   a very focused consumer need in a way the iPad can't do well.&quot; (<a href="http://usadapter.typepad.com/blog/2010/03/apple-releases-its-ipad-multimedia-tablet-threatening-the-ebook.html" target="_blank">usadapter.typepad.com</a>)</h5>
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